TEMPE, Ariz. – The U.S. manufacturing sector shrunk for the sixth consecutive month in a row in April, while furniture manufacturing fell for the 12th straight month.

The Institute for Supply Management’s April report measured the manufacturing sector at 47.1%, representing further contraction. Contraction has slowed from March, however, which measured at 46.3% and represented the lowest reading since May 2020. Any reading below 50 indicates a contraction.

“The U.S. manufacturing sector contracted again; however, the index improved compared with the previous month, indicating slower contraction,” said ISM Chairman Timothy Fiore. “This is the sixth month of contraction and continuation of a downward trend that began in June 2022. Of the five subindexes that directly factor into the index, only one (employment) is in growth territory. Of the six biggest manufacturing industries, just two registered growth in April.”

“Demand eased again, with new orders contracting but at a slower rate,” he said. “Inventories are entering the low end of ‘too high’ territory, a negative for future production, and order backlogs continue in strong contraction. Panelists’ comments continue to indicate near equal levels of activity toward expanding and contracting head counts at their companies, amid mixed sentiment about when significant growth will return.”

Of the 18 manufacturing industries recognized by the ISM, just five reported growth, with two reporting no change. The other 11 all reported a decline.

Furniture and wood products reported the biggest and second-biggest contractions, respectively. Furniture saw the biggest decline in new orders, while wood products reported no change. Furniture saw the second biggest drop in production output, only beating out textiles. Wood products saw the third biggest dip.

Furniture saw the second biggest dip in employment, again only coming out ahead of textiles. Wood products reported no change.

Furniture reported an increase in supplier delivery speeds, as did nine other industries. Furniture saw the biggest contraction in inventory levels, with wood products seeing the fifth biggest.

Furniture was one of seven to report that customers’ inventories are too high. It reported no change in the prices of raw materials, while wood products reported a decrease. Both furniture and wood products both reported lower backlogs of orders.

Source: https://www.furnituretoday.com/